INLSA
Shauwn Mpisane outside the Pinetown Magistrates Court on Friday. Picture: Jaques Naude
Durban – Shauwn Mpisane fought to stay out of jail this weekend so that she could prepare for her R5 million fraud trial which begins on Monday.
This was after her arrest on Friday on new charges of alleged corruption and defeating and obstructing the course of justice.
Mpisane, who handed herself in at the Mayville police station at 9.30am on Friday after being warned by police of her pending arrest, was granted R50 000 bail in the Pinetown Magistrate’s Court.
The State opposed bail, saying she had shown a propensity to tamper with State witnesses and evidence.
However, Mpisane denied the State’s allegations that she had interfered with a witness, Nilendra Allopi of Nelson Allopi and Associates, in her tax fraud trial by asking him to amend invoices totalling R749 585.
The eThekwini Municipality now faces fresh embarrassment after municipal manager Sbu Sithole reinstated a R237.3 million contract for Mpisane’s company to build 2 825 houses in Umlazi.
This was after a court challenge by Mpisane and an out-of-court settlement that the contract continue.
Reacting to her arrest and the fresh charges, the DA on Friday called for the immediate suspension of Sithole and an investigation into his role in allowing the city to continue to do business with her close corporation, Zikhulise Cleaning, Maintenance and Transport.
Mpisane and her former metro policeman husband Sbu have hit the headlines for the controversy around the building contract and for their lavish lifestyle.
Mpisane owns five properties, one of these, her residence in upmarket La Lucia, and is known for her designer fashion style, lavish parties and luxury vehicles including a Rolls Royce Ghost, Ferrari 612 Scaglietti Grand Tourer, Porsche Turbo and twin Lamborghinis.
In her pending criminal trial Mpisane and her close corporation are accused of defrauding Sars by submitting false tax returns of about R5m. She has pleaded not guilty. She is also charged with contravening the Close Corporations Act for managing a business in spite of being disqualified due to a previous fraud conviction.
Mpisane, dressed in a black dress with lace sleeves and a turquoise belt and high-fashion wedge shoes, stood in the dock chewing gum, while advocate Jimmy Howse and prosecutor Yuban Achary argued. Her husband Sbu Mpisane appeared tense, sitting in the public gallery.
Achary contended that Mpisane had committed an offence of corrupt activities relating to the witness and evidence.
“On 11 October, 2012 the accused offered to give a gratification to Nilendra Shamal Allopi, which gratification would take the form of being given the future design and monitoring work for the company of Mr Allopi at the Umlazi Infill Housing Project,” Achary stated.
“The gratification was offered to Mr Allopi with the intent to cause him to alter the invoices with the intent to impair the availability of evidentiary purposes of such documents for use at the trial,” he said.
Achary said Allopi had changed the invoices to reflect that the work had been done for Zikhulisi instead of her private property, which was originally stated.
But in her affidavit, Mpisane denied the allegations and said justice would not be served if she was not granted bail as she needed to continue preparing for her trial.
“I find it a truly remarkable co-incidence that I am arrested the Friday before my case where the investigating officer is the arresting officer and the prosecutor is the complainant,” Mpisane said.
Her lawyer Themba Majoli said outside court he believed the charges were “trumped-up” and “a calculated effort to make her look bad”.
Mpisane’s business was given a contract to take over a R11.5m housing project in Umlazi B Section which grew to R179m according to the auditor-general’s 2009/10 report. The contract was suspended last November after the municipality found that the awarding of the contract was flawed but Mpisane took the city to the High Court which ruled that it continue with the agreement it had signed for her company to construct the houses.
City manager Sithole this week defended his decision to allow Mpisane to continue the project to build the 2 825 houses after the municipality approved the use of section 36 of the supply-chain management policy to award her the same contract which has now grown to R237.3m.
DA eThekwini caucus leader Tex Collins said the arrest had justified the DA’s long-held view that the city should not have done business with Mpisane. He called for the immediate and indefinite suspension of Sithole pending an investigation into the part he played in allowing the city to continue to conduct business with her and for a cessation of every contract relating to her pending investigation.
“The DA cannot understand how the municipality could enter into an agreement with a convicted fraudster, one who presently has over 170 charges of fraud, forgery and uttering. It is unthinkable how the municipality could then hand her a contract for another 2 800 low-cost houses, despite the fact that to do business with a convicted individual is contrary to council policy and the Municipal Finance Management Act,” Collins said.
“City Manager, Sbu Sithole must shoulder the blame for this deplorable state of affairs,” Collins said.
Independent on Saturday
Link:
Mpisane’s legal troubles mount